NJ gas prices could drop to $1.50

Per-gallon gasoline prices are expected to drop even further in the coming weeks, according to Jeff Pelton of GasBuddy.com, and drivers could be greeted by prices in the $1.50 range by the end of the year.

New Jersey motorists already don't have to drive too far to find prices under the $2 mark. Average prices have slid by more than 20 cents over the past month and more than a dollar over the past year.

But a perfect storm in the industry could continue the downward spiral.

"Come Christmastime, the prices people should see are going to be eye-popping," said Pelton, senior petroleum analyst for the northeast. "We're talking 40-50 cents cheaper than they are today."

Three factors are contributing to the pleasant trend and prediction.

One is the annual switch from summer blends of gasoline to cheaper, winter blends of gasoline. The changeover occurs Sept. 15.

On top of that, the summer driving season is coming to an end.

"With that is going to be a downtick in demand, and you're also going to have pressure on gas prices to drop," Pelton explained.

As retailers jockey for the consumer dollar, the real winners are the drivers.

Thirdly, Pelton noted an oversupply of crude oil, with the industry "running out of places to store it."

"It should be really a great holiday for everybody," he said, pointing to the money consumers will be saving at the pump. "Our gifts should all be supersized this year."

New Jersey currently has the seventh-least expensive gas prices among the states.